Fake insurance plans that promised to pay for services sold to hundreds over age of 80

San Diego 
A Las Vegas couple charged with scamming hundreds of elderly people through fake insurance plans pleaded guilty Wednesday to counts that will put the husband in prison for 11 years and require both to pay more than $3 million in restitution.

Michael and Melissa Woodward, who remain out of jail on $1 million bail each, appeared before San Diego Superior Court Judge Laura Halgren to admit tax fraud, among other charges.

Prosecutors said they have identified 240 to 250 victims in San Diego County and an additional 150 to 200 victims in the rest of California who lost an estimated total of $3.6 million. Hundreds of other victims going back 10 years were found in Washington, Oregon, Texas and Minnesota.

The Woodwards were arrested April 10 at their home in Las Vegas and extradited to San Diego. Each defendant was charged with 11 counts, including residential burglary, grand theft, tax fraud, theft from an elder and selling insurance without authorization.

Michael Woodward pleaded guilty Wednesday to burglary and theft from an elder of more than $500,000, state tax fraud and selling insurance without a license.

Halgren said the defense and prosecuting attorneys had agreed he would receive an 11-year state prison sentence, to be followed by supervised parole, and pay restitution.

Melissa Woodward pleaded guilty to state tax fraud for not filing a return in 2007. She faces up to a year in county jail or five years’ probation and payment of restitution.

The two are scheduled to be sentenced Aug. 8.

District Attorney Bonnie Dumanis said at a news conference that the insurance plans sold by the Woodwards, which cost as much as $4,000 per year, promised to pay for unlimited in-home, nonmedical services, but instead were “worthless.”

Prosecutors said the victims would pay for the services, such as cleaning, cooking and shopping, then submit a request for reimbursement. The defendants would pay the smaller claims, but claims for larger bills would be rejected or ignored.

Michael Woodward, who also used the names Mike Woods or Mike Smith, would then return to victims’ homes and tell them to pay more premiums for additional services, prosecutors said.

Deputy District Attorney Michael Zachry, who handled the case, has said the couple used the money they obtained in the scheme to pay for a lavish lifestyle that included a home on a golf course, art, jewelry, luxury cars and other pricey items.

Zachry said all of the victims were over age 80 and many were over 90.

The Woodwards were the sole employees of their company, which they operated under various names including Secure Tomorrows, Home Health America and Secure Care, Zachry said at a prior hearing.

A defense lawyer argued during a previous court hearing that the contracts the Woodwards’ company offered were agreements for services, not insurance policies.